The Keys to Success with Customer Loyalty

August 18, 2016

Name: Kim Wyrick
Title: Brand Ambassador
Tenure at Indium: 5 months
Years in Industry: 20+ years

Are you even listening to them?

Customers, that is. They talk to their friends and family every day about their favorite restaurant, what they love about their insurance agency or why they’ve had a bad experience at their doctor visit. What are they saying about you? More than ever, we need to LISTEN to what they are saying about our companies, our service levels, and our brand, and we need to CARE. As a Brand Ambassador for Indium, it’s my job to make sure I listen to our agents and find out what we can do to build an ‘Awesome’ experience for them with every interaction. Then, and only then, can we build a loyal customer following. And really, that is the key to success.

The question you may have is “How do I listen?” 

Keep reading.

In my search for understanding customer loyalty, I had the chance to become certified in Net Promoter Score, or NPS, through the Net Promoter Network. Net Promoter Score was introduced to the business world in a 2003 Harvard Business Review article by Fred Reichheld. His research showed a direct correlation between higher NPS scores and business growth. Yes! Exactly what we are all striving for. I was amazed to learn that just by asking our customers one simple question, “How likely are you to recommend us to your friends and family?”, and scaling the answers from 1-10, we can really evaluate our customers’ satisfaction. Take it a step further, and NPS breaks the respondents into three main categories based on their rating as well.

It looks like this. Net Promoter Score is determined by subtracting the % of Detractors (those who rate you a score of 0 – 6) from the % of Promoters (those who rate you a 9 or 10). Passives are those who rate you a 7 or 8, but don’t factor into this equation.

.Promoters         Passives         Detractors

NPS

Promoters account for 80 percent of referrals in most businesses, while Detractors account for 80 percent of negative word-of-mouth. (Net Promoter System, 2013). Are you listening to both of these groups? Are you ACTING ON what they are saying about your business?

Before NPS, if you wanted customer feedback, you may have sent lengthy annual customer surveys and received on average a 3-5% response rate, right? And then you sifted through those responses for the good comments, usually patting yourself on the back for a job well done, or seeking out the negatives, deciding those reviews were specific one-off instances perhaps.

But what did you do next? Did you reach out to the individuals who provided positive testimonials to thank them for their feedback and ask them for a referral? Or to the individuals with negative testimonials asking for more details around the situations that impacted them? Probably not.

Now, enter NPS. 

With this one simple question, which solicits a 30-50% response rate, you can easily identify the Promoters of your business and reach out to them to ask for their help in spreading the word about your brand. Think of them as an (unpaid) extension of your marketing department.

In turn, you can identify the Detractors and reach out to them as well to determine what went wrong and create close looped processes in your company that need to be improved.  This is a huge step in the right direction for creating an environment where your customers really believe and feel that you are listening to them. And as you send out the NPS survey regularly, you are building a loyal customer base that will help to increase your results without a doubt. In fact, Net Promoter Network says that companies that have embraced NPS have demonstrated its benefits time and again, including: an increased retention rate, an increase in new customers, and, on average, an industry’s NPS leader outgrew its competitors by a factor greater than two times. (Net Promoter System, 2013)

So I will ask again. Are you really listening to your customers? 

Indium knows that customer satisfaction and loyalty are critical to our success as well as to the success of our agency partners. That’s why we’ve partnered with AskNicely customer feedback and survey software, to bring NPS technology to Indium agency partners at a discounted rate.

AskNicely allows you to set up and send a NPS survey to your customers on a frequency basis that you decide. You receive survey results in real time so you can take prompt action. The results include critical feedback from your customers that allows you to evaluate your customer experience process from end to end. This information will allow you to find out what you can do to deliver exceptional customer experiences that, ultimately, lead to a loyal customer following.

And really, that is the key to success.

Contact Kim Wyrick at getanedge@goindium.com to learn more about pricing and training support.